Greece and the euro are facing a tough week as European Union and IMF experts resume an audit of progress on cutting the public deficit and reforming the economy, with default threatening.

The EU and IMF will decide on the basis of the audit whether to release the next slice of rescue funds of 8.0 billion euros ($11.0 billion) from a first bailout in May last year.

Without this money, Greece will be unable to pay its current bills from about the middle of October.

Rumours that plans are being made for an inevitable Greek debt default caused further volatility on stocks and currency markets on Monday, in a climate overshadowed by signs of global economic slowdown.

Market analysts were disappointed that yet another weekend of high level international crisis talks had ended with words but no action.